S&P lowers Edison Mission, subsidiaries

Standard & Poor's said it lowered its corporate credit rating on Edison Mission Energy to D from CCC and lowered its subsidiaries Midwest Generation LLC and Edison Mission Marketing & Trading Inc., to CCC- from CCC.

The outlook is negative.

The agency said it lowered the issue rating on Edison Mission's 2017, 2019 and 2027 bond ratings to D from CCC and lowered the rating on the company's 2013 and 2016 bonds to CCC- from CCC. Recovery ratings on the bonds are unchanged at 3.

S&P said it also lowered Midwest Generation's senior secured debt to CCC+ from B-, but left unchanged its 1 recovery score, indicating very high recovery prospects of 90% to 100%.

The agency said Edison Mission's election not to pay interest despite a large cash balance reflects that the company will likely restructure, just as its parent Edison International has been saying for quite some time.

S&P said it lowered the company's rating to D rather than SD because the agency thinks the company will continue to default on other debt repayment obligations.

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